Palm oil increases due to output concerns and diminished inventories.
Futures for Malaysian palm oil closed on Monday higher, as falling inventories and output concerns resulting from arid weather conditions drove up prices. Palm oil increases due to output concerns and diminished inventories.
At 3,746 ringgit, the benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange increased by 35 ringgit or 0.94 percent.
“Prices have remained stable due to concerns over palm oil production in Indonesia and Malaysia, as well as declining inventories,” a dealer based in Mumbai explained.
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Malaysia’s palm oil supplies decreased for the first time in seven months at the end of November, according to data released by the industry regulator on Tuesday. Production declined more than exports.
Nevertheless, export deceleration capped gains.
According to cargo surveyor Intertek Testing Services, Friday marked a 13.6% month-over-month decline in Malaysian palm oil product exports during the first half of December to 591,490 metric tons.
On the Chicago Board of Trade, soybean futures fell 0.4%.
A trade ministry official stated last week that Indonesia intends to set its crude palm oil reference price for December 16-31 at $767.51 per metric ton, down from $795.14 in the first half of the month.
A leading trade organization reported that palm oil imports into India surged to a nearly three-month high in November, up almost 23% from October, as refiners opted for the tropical oil over competing soy oil and sunflower oil due to hefty discounts.
A wave C may propel palm oil prices to 3,748 ringgit per metric ton, according to Reuters technical analyst Wang Tao.
As Houthi attacks on ships in the Red Sea increased concerns of oil supply disruptions and Russia’s plan to reduce exports in December provided additional support, the price of oil rose on Monday.
On Monday, Asia stocks declined in a lackluster start to the week, characterized by concerns that Japan’s central bank may move further away from its ultra-easy policies and market pricing of interest rate cuts in the United States is influenced by a critical reading on inflation.
